Chicago City Council Fails to Override Mayor's Veto on Tipped Workers' Pay

State lawmakers consider legislation to strip Chicago's power to phase out subminimum wage.

Apr. 15, 2026 at 10:48pm

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A moody, cinematic painting of a lone server standing behind a diner counter, the space filled with warm light and deep shadows, capturing the tension and emotion of the political debate over tipped workers' wages.The debate over tipped workers' pay in Chicago reflects the delicate balance between supporting small businesses and ensuring fair wages.Chicago Today

The Chicago City Council failed to override Mayor Brandon Johnson's veto of a measure that would have frozen the phase-out of the subminimum wage for tipped workers in the city. The vote was 30-19, four votes short of the threshold needed. Some aldermen argued the move would hurt small businesses, while others said tipped workers deserve a living wage. The fight may continue at the state level, where lawmakers are considering legislation to strip Chicago of its power to phase out subminimum wage.

Why it matters

The dispute over tipped workers' pay in Chicago highlights the ongoing tension between supporting small businesses and ensuring workers earn a living wage. The outcome could set a precedent for other cities and states grappling with similar issues around the subminimum wage and its impact on local economies.

The details

Chicago's 'One Fair Wage' ordinance, passed in 2023, aims to eliminate the city's subminimum wage for tipped workers, which is currently set at $12.62 an hour. The plan is to increase the minimum wage for tipped workers to the city's overall minimum of $16.60 by 2028. However, some aldermen, such as Gilbert Villegas, have pushed to pause this plan, citing concerns from restaurants. The City Council's failed attempt to override Mayor Johnson's veto means the phase-out will continue as scheduled.

  • The 'One Fair Wage' ordinance was passed in 2023.
  • The current minimum wage for tipped workers in Chicago is $12.62 an hour.
  • The minimum wage for tipped workers is set to increase to $16.60 by 2028.

The players

Brandon Johnson

The mayor of Chicago who has vetoed City Council measures three times, including the one to freeze the phase-out of the subminimum wage for tipped workers.

Jessie Fuentes

A Chicago alderman who reacted to the City Council's failure to override the mayor's veto, arguing that tipped workers deserve pay increases like other sectors.

Gilbert Villegas

A Chicago alderman who pushed to pause the plan to eliminate the subminimum wage for tipped workers, citing concerns from restaurants.

Janette Taylor

A Chicago alderwoman who said the city should have brought both sides together earlier to find a compromise on the issue.

Sam Toia

The president of the Illinois Restaurant Association, who said state-level legislation could make the tip credit wage uniform across Illinois.

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What they’re saying

“Imagine if we were to tell any other sector that they're not going to get their pay increase. Imagine if you tell firefighters they're not going to get their raise, or you tell CPD that they're not going to get their raise, no one is going to accept that, right? And so, we shouldn't accept it for tipped workers.”

— Jessie Fuentes, Chicago Alderman

“There's a reason why Washington, D.C. pulled back on this ordinance because it was hurting businesses. There's a reason why Michigan and Massachusetts both voted the elimination of tip credit down because it hurts small businesses. Remember, there are only so many levers that we can pull. It's either raise prices or cut hours.”

— Gilbert Villegas, Chicago Alderman

“You're sitting in a City Council full of organizers and what we should have done is have both sides come together a long time ago and have the conversations because now we're in this 'who is right' and 'who is wrong' and neither one. I want tipped workers to get paid. I want them to make a living wage, but I also don't want to see the Soulé and the Virtues and those small businesses close either.”

— Janette Taylor, Chicago Alderwoman

“That bill would make it uniformal from Chicago to Rockford, to Peoria to Springfield to East St. Louis that the tip credit wage would be set at the state level.”

— Sam Toia, President, Illinois Restaurant Association

What’s next

At the statehouse, lawmakers are considering legislation to strip Chicago of its power to phase out subminimum wage, which could make the tip credit wage uniform across Illinois.

The takeaway

The dispute over tipped workers' pay in Chicago highlights the ongoing tension between supporting small businesses and ensuring workers earn a living wage. The outcome could set a precedent for other cities and states grappling with similar issues around the subminimum wage and its impact on local economies.